e. Consider the following Phillip's Curve, It = 1 + 7 - 2.5ut where It = Tit-1 (Note, units are in % form) and calculate the natural rate of unemployment (u.). f. Following on from e. assume that the inflation rate in time period t - 1 = 4%. In period t policy makers bring the unemployment rate down to 2% and decide to keep it there indefinitely. Calculate the rate of inflation in periods t, and t+1. g. Calculate how would your answer to f. be different if inflation expectations are fixed nf = 2 h. Assume that a proportion ()) of workers sign indexed labour contracts such that the Phillip's curve becomes: It = Ant + (1 -A)nif - 2.5(ut - un ) where my = 0nt-1. Given this, Recalculate f. assuming 1 =: and 0 = 1.2